Return expectations from Asian fund managers are bolder, with 4 in 5 participants anticipating a rise in regional equities in the next 12 months, according to a Bank of America (BofA) survey.
The return expectations are based on above-par earnings and supportive policy.
The survey showed the futures market is pricing 141 basis points of cuts for 2024. However, re-pricing policy rates are yet to impact the global growth outlook.
The survey revealed that about 50 per cent of the Global Fund Manager Survey (FMS) panelists brace for a weaker economy in the next 12 months.
The outlook towards China has changed drastically after a humbling year, with 34 per cent of BofA poll participants preferring to be in the wait-and-watch mode and 28 per cent looking for opportunities elsewhere.
74 per cent of the participants believe China’s equities are headed for structural de-rating.
The poll said fund managers have low hopes on the economic front, with only a net 19 per cent expecting a more robust economy in the next 12 months, lower than during the market lows in October 2022.
Among the preferred markets, Taiwan has made significant strides in the pecking order to join India, the poll showed.
First Published: Dec 22 2023 | 8:23 PM IST
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